ANNOUNCEMENT 21 Apr 2009In April 2009, the government of Pakistan announced a change in financial export support.
NUMBER OF INTERVENTIONS
SME Finance Department Circular No. 08 of 2009
On 21 April 2009, the State Bank of Pakistan amended the Long Term Financing Facility thereby including financing for plant and machinery used in export-oriented projects in sub-sectors/processes of the Spinning sector. Further the limit of refinancing for such projects by the State Bank of Pakistan for the financing institutions has been set at 50% as opposed to 100% for others.
The LTTF was announced in 2007 to provide long term local currency financing for imported and locally manufactured plant & machinery used for certain export oriented projects that have annual exports of at least USD 5 million or at least 50% of the sales, whichever is lower.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries